XAware does not prevent you from using input XML containing inline XML schema, or from producing xml results (XML views) containing inline xml schema.

However, like many other XML tools, there is no explicit support for validation of XML with inline XML schema. XAware uses external schemas to validate input XML (if you check the input validation option) or to validate XML results in Designer (if you check the execution validation option). t won't validate xml with no external schema, and some inline XML schema. It would be the responsibility of the invoker to validate the results received from XAware, or you can write a Functoid to validate the XML, if you can find an appropriate parser that validates inline xml schema.

In terms of receiving input xml, processing the xml, or storing the xml in datasource such as MySQL, xml with inline schema can be handled the same as any xml. You should look at the SQL tutorials for examples on shredding xml and storing the fields in a relational database (a common use case). Storing XML in a database, as XML or binary or text, depends on the particular database capabilities (whether they have an "XML" type or use a CLOB or large text field) to store XML.

If you could provide a little more detail about your use case, we might be able to provide some additional examples or guidance on how XAware can help.